Abstract
Abstract In this paper, we analyze how much the shipping sector could contribute to global CO2 emission reductions from an efficiency point of view. To do this, a marginal abatement cost curve (MACC) for the shipping sector is generated that can be combined with a MACC for conventional CO2 abatement in the production and consumption sectors around the world. These two MACCs are used to assess the following as regards the various global reduction targets: (a) what the maximum global cost savings would be that could be achieved by abating emissions in the shipping sector, (b) how much the shipping sector could contribute to abating emissions cost efficiently, and (c) what the potential additional costs of implementing a separate solution for the shipping sector would be. The focus is on the year 2020. We find that the shipping sector could always contribute to efficient global emission reductions and thus could always achieve global cost savings, but also that the size of the contribution and the size of cost savings depend heavily on the MACC case assumed, i.e., on how the existence of negative abatement costs is treated in a MACC, and on the reduction potentials and costs of measures assumed.
Highlights
The Second IMO GHG Study 2009 (Buhaug et al, 2009) of the International Maritime Organization (IMO) on greenhouse gases (GHG) in the shipping sector presented two important insights
The contribution of the shipping sector to efficient global emission reductions and the potential cost savings depend to a large degree on the marginal abatement cost curves (MACCs) case assumed, i.e., depend on how the existence of negative abatement costs is treated in a MACC, and on the reduction potentials and costs of measures assumed
While it is clear that emissions generated by the shipping sector are substantial and can be reduced, at least partially, at low costs it has not been analyzed so far how much emissions should be reduced when the objective is to reach a given global emission target at minimal costs
Summary
The Second IMO GHG Study 2009 (Buhaug et al, 2009) of the International Maritime Organization (IMO) on greenhouse gases (GHG) in the shipping sector presented two important insights. Other sectors would have to emit less and reduce their emissions further to offset the increase in shipping emissions. This has led to discussions on how to regulate the shipping sector’s CO2 emissions, discussions which are continuing in the IMO, and in the scientific community. These discussions center around the question whether this sector should be subject to an emission cap or whether it should be subject to some other means of reducing emissions (UNEP, 2011). Market-based policies for the shipping sector are being discussed and investigated (MEPC, 2010)
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